Sebi on Wednesday imposed a total penalty of Rs 25 crore on Mukesh Ambani, Anil Ambani, other individuals and entities for non-compliance with takeover norms
Sebi on Wednesday imposed a total penalty of Rs 25 crore on Mukesh Ambani, Anil Ambani, other individuals and entities for non-compliance with takeover norms in a Reliance Industries case dating back to 2000. Others penalised by the watchdog include Nita Ambani and Tina Ambani. Nita is wife of Mukesh Ambani and Tina is wife of Anil Ambani.
RIL’s promoters and Persons Acting in Concert (PAC) failed to disclose the acquisition of more than 5 per cent stake in the company way back in 2000, Sebi said in its 85-page order. In 2005, Mukesh and Anil had split the business empire built by their father Dhirubhai Ambani.
As per the order, 6.83 per cent shares that were acquired by RIL promoters together with PACs consequent to exercise of option on warrants attached with non-convertible secured redeemable debentures were in excess of ceiling of 5 per cent prescribed under the takeover regulations. Thus, the obligation to make a public announcement about acquiring the shares arose on January 7, 2000. This was the date on which the PACs were allotted RIL equity shares on exercise of warrants issued in January 1994, the order noted.
However, Sebi found that the promoters and PACs have not made any public announcement for acquiring the shares. Since the promoters and PACs have not made any public announcement for acquiring shares, it is alleged that they have violated the provisions of the takeover regulations.
According to the order, various individuals and entities failed to “make public announcement, deprived the shareholders of their statutory rights/ opportunity to exit from the company”. The regulator has imposed the penalty of Rs 25 crore, to be paid jointly and severally, by the individuals and entities concerned.